Air Canada and pilots union reach tentative deal, averting strike or lockout

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Air Canada AC-T and its pilots union reached a tentative four-year agreement, the parties said just past midnight, averting a strike or lockout at Canada’s largest airline.

Details of the collective agreement, which must be ratified in a vote by the airline’s 5,200 pilots represented by the Air Line Pilots Association, were not immediately available.

“The new agreement recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline,” Air Canada said in a statement, adding the ratification vote is expected over the next month.

Charlene Hudy, a pilot who heads the Air Canada union, said in a statement that weeks of “intense round-the-clock negotiations” yielded a deal with improved pay, retirement and work rules.

The tentative contract replaces one reached 10 years ago that provided raises of 2 per cent a year. The new one will mean an additional $1.9-billion for its members over the life of the contract, the union said.

“This agreement, if ratified by the pilot group, would officially put an end to our outdated and stale decade-old, 10-year framework,” Ms. Hudy said.

If approved, the deal will cap a tense time between the airline and the pilots union. News of the tentative agreement will also bring relief to Air Canada’s customers, who had been braced for a possible shutdown that would upend travel plans.

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ALPA had been pushing to narrow the pay gap with pilots at other Canadian and U.S. airlines, and win scheduling provisions that allow pilots to make more and spend more time at home. Air Canada had said it had offered a contract with raises of 30-per-cent and improved work-life balances, and called the union’s pay demands unrealistic.

“Thanks to the hard work of the parties and federal mediators, disruptions have been prevented for Canadians,” Labour Minister Steven MacKinnon said on social media. “Negotiated agreements are always the best way forward and yield positive results for companies and workers.”

Air Canada and Air Canada Rouge flights will fly their usual Sunday schedules, the airline said.

Air Canada had called for the federal government to intervene and order binding arbitration if the parties failed to reach an agreement and travel was disrupted. The move angered the union, which accused it of trying to trample workers’ rights to collective bargaining.

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